The Coming Bank Crisis

With everyone (well, almost everyone – I am one of the lonely skeptics) convinced that we have stepped back from the “edge of the abyss”, the title of this article may be viewed as laughable. When you connect the dots, as I will in this article, you will at least stop laughing, and, maybe, realize that we still have a big problem.

We have a confluence of five factors that have the potential to create damage to banking not seen in 80 years, and that includes the Great Depression. We’ll hit these factors one at a time.

First Factor: Banks Are Not Doing Enough BusinessSecond Factor: Banks Are Failing at a Rate Not Anticipated Two Months AgoThird Factor: Defaults Are Going to Increase for Several More QuartersFourth Factor: The FDIC Is in TroubleFifth Factor: We May Be Going to Historic Lows in Bank Credit

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It is Our Responsibility to Examine and Change Society

The paradox of education is precisely this - that as one begins to become conscious, one begins to examine the society in which he is being educated. The purpose of education, finally, is to create in a person the ability to look at the world for himself, to make his own decisions, to say to himself this is black or this is white, to decide for himself whether there is a God in heaven or not. To ask questions of the universe, and then learn to live with those questions, is the way he achieves his own identity. But no society is really anxious to have that kind of person around. What societies really, ideally, want is a citizenry which will obey the rules of society. If a society succeeds in this, that society is about to perish. The obligation of anyone who thinks of himself as responsible is to examine society and try to change it and to fight it - at no matter what risk. -- James Baldwin